$100 billion. That’s the amount that the cottage industry is currently worth. Considering the fact that this is just a small portion of the overall vacation rentals industry – we don’t need to say much else on why this sector is exploding year-by-year.
Once upon a time anyone heading out on vacation would go straight for the hotels. First it might be via a travel agent, then the internet popped up and more recently, they may have turned to travel comparison websites. The process has always been developing but now, the vacation rentals sector is posing a real threat. You only have to take a look at respected Brian Ferdinand, and his recent business interests, to see that this is something which is being taken very seriously indeed.
So, why are vacation rentals suddenly becoming ridiculously fashionable? Let’s mull over some of the reasons behind this lucrative industry.
The emergence of Airbnb
It wouldn’t be a vacation rental story without a mention to this brand, would it?
Little else needs to be said about this topic, really. Airbnb has turned people’s heads if nothing else; travelers no longer feel the need to stay in a hotel when the alternative is, in a lot of cases, much better and cheaper.
They aren’t limited by location, while the social review platform means that anything which is booked is done so in pure confidence.
Without Airbnb, we probably wouldn’t have penned this article.
Big players are starting to enter the game
We’re all in agreement that Airbnb have started the surge in vacation rentals, but plenty of other companies are now jumping on-board too.
For example, some of the biggest hotel chains in the world have started switching their attention to vacation rentals, rather than staying with their tried-but-tested platform. In fact, for many of these chains, the vacation rentals sector is providing as much as 50% of their properties.
While the big players might be getting involved, we should also give a special mention to the smaller brands that have made such an impact. Those companies who have now been involved in vacation rentals for a decent amount of time are reaping the rewards and becoming huge themselves. In fact, some studies have suggested that we’ll see more billion-dollar companies arise out of this industry due to the fantastic growth of these companies who were once regarded as small fish.
The industry is much more understood
You’ll have probably noticed that this article is structured in the way in which every point has a knock-on effect. The same occurs with this next issue.
The success of vacation rentals, and bigger demand, means that the industry has suddenly become more understood.
Companies now know that they have to make their properties as professional as possible and at least retain some of the principles of the typical hotel stay. For example, while soaps and shampoos might not have been provided at one point, now these must be a given. When it comes to Wi-Fi, this is something else that is demanded by guests.
As these amenities are matching what a hotel can offer, it just adds further fuel to this industry to take more of a share and continue to boom.